6 ways you can save your income tax before March 31

There are just a few days left for the financial year 2023–24 to finish, and it is the time of the year when you should make the last-ditch effort to avail tax benefits. Deductions under Section 80C are the most popular way to save tax. However, there are many other ways that can help you reduce taxes.
 
In this article, we will discuss a few schemes that can help you save more taxes.

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Submit Form 12B

Form 12B is an income tax form that must be completed by a salaried individual if they join a new organisation in the middle of a year. If you change jobs during the fiscal year 2024, you must report your income using Form 12B. Your new company will be able to deduct accurate TDS depending on the information given on Form 12B by March 31.

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Tax benefits under Section 80C 

Under the old tax regime, one could claim a deduction of Rs 1.5 lakh under Section 80C and an additional deduction of Rs 50,000 for NPS contributions under Section 80CCD(1b). Other deductions include medical insurance premiums for yourself, your family, and your dependent parents, as well as interest on housing and education loans. However, not all taxpayers claim the full amount of their allowed deductions.

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Buy a health insurance policy

Section 80D allows individuals to claim tax deductions for the part of their yearly taxable income spent on premium payments. 

Other tax saving options beyond Section 80C

Apart from 80C deductions, there are several deductions that you may avail to reduce your income tax. Tax breaks on health insurance premiums and home loan interest are just a few examples.
 
The medical insurance premium would be claimed at Rs 50,000. (Rs 25,000 for self-spouse and children, and Rs 25,000 for dependant parents under 60 years old). Claim medical insurance premiums paid up to a limit of Rs 1,00,000 per year for senior citizens. If senior citizen individuals are not covered by any health insurance, then medical expenses can be recovered under 80D up to Rs 50,000.

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Section 24 allows for a deduction of up to Rs 2 lakh for interest paid on a house loan. Additionally, Section 80EE also permits you to get a tax deduction of up to Rs 50,000 in house loan interest.
 
Section 80G allows a deduction for any charitable contributions made to notified institutions or funds.
 
Section 80E allows a deduction for interest paid on an education loan.